Here I explain, using Ludwig Von Mises’ monetary regression theorem, why any other country that defaults can quickly regain economic footing by pegging to the dollar and starting a new currency. But if (when) the US defaults, there will be nothing to peg the dollar to.

Except gold.

Here’s an excerpt.

NEW YORK (TheStreet) — Argentina defaults, and the cycle repeats once again, exactly as before. After defaulting, the government pegs to the dollar, as tracked in the PowerShares DB U.S. Dollar Index Bullish(UUP). Then it spends too much money buying votes, prints money to compensate (currency devaluation, no more peg), inflation results, the printing presses are shut on the verge of hyperinflation, government can’t pay its debts, it defaults, and everyone loses their savings and starts over, Fight Club style. Then someone else is elected and promises to peg to the dollar, and everything happens again.